Golden Power Dossier with Italy Remains Open Says EC

Rome: The European Commission stated that the case concerning Italy’s potential misuse of its golden powers in relation to UniCredit’s bid to acquire Banco BPM is still unresolved. This announcement follows the news this week that Italy’s second-largest bank, UniCredit, has decided to withdraw its offer.

According to Ansa News Agency, earlier this month, the Commission communicated its concerns to the Italian government through a letter. The letter highlighted reservations about the application of Italy’s ‘golden powers’, suggesting that this might infringe upon Article 21 of the EU Merger Regulation and other EU laws. The Italian government had employed these powers to impose conditions related to UniCredit’s activities in Russia, loan-to-deposit ratios, and its investments in Anima Holding, a fund manager recently acquired by BPM. These conditions were prerequisites for approving the hostile takeover bid.

European Commission spokesman Thomas Regnier acknowledged the decision not to proceed with UniCredit’s offer for Banco BPM. Regnier emphasized that the decree concerning the golden powers is still under consideration, and the letter sent to the Italian government pertains to this decree. Consequently, the discussions between the Commission and Italian authorities remain ongoing.

“We have sent a letter and the goal is to get a response,” Regnier stated, adding that the exchanges with Italian officials are positive and will continue in this manner.